The car industry in the UK has not had its problems to seek, not only during the current recession but also well before it. So when something positive happens in the industry it should really be shouted from the rooftops.

And when it comes from one of the most innovative forms of environmentally friendly developments seen for many years, then no form of praise is sufficient. Coventry based electric van manufacturer Modec has won themselves a place in the history book on the announcement that they have been awarded a contract to supply 100 vehicles to a Paris, France distributor of distinctive urban delivery vans, ElecTruckCity. Mode’s van, the first of its kind to be designed specifically as a battery-powered vehicle, has become the first in its category to gain EC Whole Vehicle Type Approval.

Being a holder of a EC Whole Vehicle Type Approval certificate means the van can be sold anywhere within the European Union without the need to go through separate homologation procedures in every member country.

In the light of their success in Europe, Modec are actively seeking to be awarded US federal approval for their yet to be named truck.

The truck will be sold to the trade for around £30,000, meaning that Modec’s maiden order will be worth £3 million to them.
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CEO of Modec Bill Gillespie announced: “International demand for Modec is extremely strong. ElecTruckCity has taken the lead by setting up a distribution network in France and we are very excited about the future of the French market. “At a time when the automotive industry is full of doom and gloom we are pleased to announce our international expansion. This proves the future of the UK auto industry is green.”Mr. Gillespie continued.

A spokesman for ElecTruckCity announced that the Modec electric truck first captured their attention as well as their imagination at the 2007 Commercial Vehicle Show at the NEC. “As soon as I saw the iconic vehicle I knew the demand for Modec would be strong in France,” said the spokesman, going on to add that the interest in electric vehicles is significant and with Modec we can meet the needs of urban vehicle operators. More than 150 vehicles are now on the road and production is set to increase in the near future to 400 vans in 2009 and triple their production to hit 1,200 in 2010.

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Tags: Car Industry, EC, ElecTruckCity, Modec, New Car

There is no doubt that we are living through some difficult but unusual times. One of the strangest phenomena that we are experiencing at the moment is that it is now officially possible to buy a brand new car at a price lower than certain second hand version of the same model can be acquired for. What this will do to the prices of second hand cars in the future one can only speculate, but in the meantime it has to be worth it for those who can take advantage of these “once in a life time opportunities” to do so.

Some good news for first-time buyers and potential up-graders is that HSBC

have announced a new range of competitive deals. It is geared towards those who are not in a position to lay down large deposits. The bank will be setting aside around £1billion allowing 10,000 new home owners to borrow up to £100,000.

However to prove that HSBC have learned their lessons, borrowers must hold a current account at the bank, and pay a one –off management fee.

Barclays are back on the winning trail with news that their deal to sell its off iShares asset management business to private equity firm CVC Capital Partners for 3 billion pounds has been finally penned.

The announcement made on Thursday shows that Barclays expect to realize a profit of 1.5 billion pounds on the deal.

It was no surprise on Thursday that the Bank of England’s announce that they will hold interest rates at 0.5 per cent for the first time since they began reducing interest rates in September 2008. At the same tine the bank confirmed their commitment to acquire £150billion in government gilts and corporate bonds.

The credit crunch has begun to dig deep in the Irish Republic with the country’s finance minister Brian Lenihan warning that the nation faced “the challenge of its life”. The minister announced that he would be imposing a series of higher taxes on in an emergency budget aimed at tackling the country’s economic crisis.

Plans included the establishment of a national asset management agency to take over an estimated €80bn-€90bn of “toxic debt” currently handled by l domestic banks.

On the stock exchange the stars of the day were Barclays Plc whose shares rose by jumped 12 percent to 177.5 pence

The government controlled mortgage lender Lloyds Banking Group also saw their shares increase by 11 percent to 79.5 pence.

Commodities were on the increase with Vedanta, the aluminum refiners climbing 13 percent (93 pence to 873.5) on the news that their fourth-quarter aluminum output gained 31 percent after their Jharsuguda smelter began its operations.

Chilean copper mine owners Antofagasta Plc enjoyed a 5.5 percent rise to (30 pence to 557) while Xstrata Plc, the world fourth-largest copper producer, jumped by 9.3 percent (55 pence to 572.5)

Copper led base metal prices were on a forward march on news that China’s economic growth could be as high as 8 percent in 2009.

Oil was in the news as the BG Group Plc rose 2.3 percent (24 pence to 1,055) after announcing that the company, in conjunction with local partner Petroleo Brasileiro SA, has discovered oil in their Corcovado-1 field, situated off the coast of South America.

The U.K.’s third-biggest software maker Misys Plc announced that their third-quarter revenue had risen by 69 percent. Shares in the company rose by twelve percent (13.5 pence to 129.25.)

On trading yesterday, the FTSE 100 rose by 1.5 percent (58.19 points to 3,983.71).

The FTSE 250 index also rose, this time by 3.88% or 260.5 points to close at 6,978.91

The pound drifted lower on Thursday after the announcement by the Bank of England not to further reduce interest rates. On the news, Sterling fell slightly against the dollar and the Euro and rose slightly against the Japanese Yen and the Swiss Franc:

Pound/US dollar 1.4664

Pound/Euro 1.1141

Pound/Japanese Yen 147.34

Pound/Swiss Franc 1.6965

Wall Street shares had another strong day on trading

The Dow Jones Average rose 223. Points to close at 8060.12. Nasdaq jumped 53.75 points to close at 1644.35.

US government data released on Thursday showed that the number of U.S. workers filing new claims for unemployment benefits actually fell slightly last week, which continued to buoy the stock market, along with news that the country’s trade deficit shrank in February, reaching to its lowest level since November 1999.

Speculation that gold prices will “easily” attain the benchmark $1,000 an ounce level this year and possibly reach as high as $1,100 is gathering strength on the news that investment demand is outstripping surging scrap supplies.

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Tags: Bank of England, Barclays, Financial News, HSBC, New Car, Recession

Everyone who has ever taken possession of a brand new car will never forget that “new smell” that it gives off. However in the recession hit Britain of 2009, it is fair to say that not too many people are enjoying the experience for the moment. Recent figures released by the Society of Motor Manufacturers and Traders (SMMT) continue to mirror that the UK public are steering well clear of the new car showrooms. In March 2009, over three hundred brand new cars hit the UK streets, which seem a lot until you consider that the figure is down more than 30% from the corresponding month of last year.

SMMT chief executive, Paul Everitt encouraged the UK Government to do more to boost consumer confidence, and that January’s £2.3 billion rescue package launched by Business Secretary, Lord Mandelson was not enough. Everitt stressed that other European countries have introduced a scheme, which pays consumers to get rid of their old cars, The scheme is proving more successful, with Germany, for example, having reported a 40% increase in new car sales for March..

On a sunnier note, reports that income for the UK advertising industry appeared to have leveled out have been announced. The news comes despite the fact that almost half of the major UK advertisers have significantly reduced their first quarter marketing budgets.

Despite that piece of seemingly news , results were an improvement on last year’s fourth quarter last year according to a recent report.

Signs that things continue to be tough came with news that UK charities are reporting a significant decrease in donations as well as a likewise increase in demands for help among the Great British public. The sad fact is that almost one thousand registered charities closed their doors within the past two years, and in the last quarter or 2008, donation levels fell by more than 60% from the corresponding year.

On the Stock Exchange, shares took a minor step backwards in most cases,

Mining conglomerate Rio Tinto Plc dropped back by 11percent (240 pence to 2208) after news that their proposed stock sale to Chinalco might not go through.

Europe’s biggest bank HSBC Holdings Plc were still riding a wave yesterday after a highly successful rights issue. The bank’s shareholders took up almost all the shares on offer, raising about $19 billion in the U.K.’s largest rights offer. Shares in HSBC rose 3.7 percent (18 pence to 450.75)

Britain’s third-largest supermarket chain J Sainsbury Plc also were on the up gaining 2.3 percent (7 pence to 319.25)

On news that DSG International Plc, the U.K. consumer electronics retail giant are looking to raise “several hundred million pounds” by selling shares to existing investors, their shares rose by 9.4 percent (2.5 pence to 29)

Europe’s second-biggest discount airline EasyJet Plc announced that the former BT Group Plc Chairman Michael Rake would be joining them as deputy chairman. Initial reactions from the market was tepid as the company’s shares fell by 0.9 percent (2.75 pence to 305)

On the news that ITN Plc the U.K.’s largest commercial broadcasting company is reportedly currently holding talks with institutional investors regarding either a rights offer or share placement. Shares in ITV rose 28.4 percent (6.25 pence to 28.25) on the strength of the unconfirmed report.

. The benchmark FTSE 100 fell 36.13, or 0.9 percent, to 3,993.54, paring four On the day the FTSE 100 was unstable and fell by 0.9 percent (36.13 points to 3993.54) putting an end to the indicator’s streak of several weeks of gains.

The FTSE 250 index rose by 1.49% or 93.35 points to 6351.92

The FTSE 100 has rebounded 14 percent in recent weeks from its 2009 lows largely due to the banks who have all reported a positive start to the year.

Analysts are now saying that the U.K. pound is liable to continue to strengthen against the euro. This comes on speculation the European Central Bank will purchase government assets as part of a quantitative easing policy, according to UBS AG.

Sterling fell slightly against the dollar and rose against the Euro while holding its own against the Japanese Yen and the Swiss Franc:

Pound/US dollar 1.4598

Pound/Euro 1.1018

Pound/Japanese Yen 127.58

Pound/Swiss Franc 1.6754

Wall Street shares took a step back after a few very good days of trading

The Dow Jones Average dropped 41.74. to close at 7975.85. The Nasdaq fell 15.6 points to 1606.71

Signs that the Obama administration are taking the current financial situation seriously comes with the news that US defence secretary Robert Gates, has , unveiled a sweeping overhaul of defence priorities on Monday, axing several high-profile weapons programmes in the process.

The series of cuts and changes, part of President Barack Obama’s $534bn defence budget cuts, also includes cancelling a deal to build a new presidential helicopter

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Tags: British Economy, Credit Crunch, Financial News, Money, New Car, Recession